"Fiscal 2017 is off to a nice start, with first quarter total revenue growth of 44%," said Steve Beauchamp, President and Chief Executive Officer of Paylocity. "In October we saw record attendance at our 8 th annual Client Conference, where we had the opportunity to interact with clients from across the country and announce several new product features. I was also pleased that Paylocity was once again named to the list of Top 100 Digital Companies in Chicago ranking number 13 on the list."

First Quarter Fiscal 2017 Financial Highlights

Revenue:

Total revenue was $65.0 million, an increase of 44% from the first quarter of fiscal year 2016.

Total recurring revenue was $62.6 million, representing 96% of total revenue and an increase of 46% from the first quarter of fiscal year 2016.

Operating Income (Loss):

GAAP operating loss was ($2.5) million, compared to an operating loss of ($3.4) million in the first quarter of fiscal year 2016.

Non-GAAP operating income was $4.0 million, compared to non-GAAP operating income of $0.9 million in the first quarter of fiscal year 2016.

Net Income (Loss):

GAAP net loss was ($2.6) million. This compares to a net loss of ($3.4) million for the first quarter of fiscal year 2016. Net loss per share was ($0.05) for the first quarter of fiscal year 2017 based on 51.2 million basic and diluted weighted average common shares outstanding. Net loss per share was ($0.07) for the first quarter of fiscal year 2016, based on 50.7 million basic and diluted weighted average common shares outstanding.

Non-GAAP net income was $4.0 million. This compares to non-GAAP net income of $0.9 million for the first quarter of fiscal year 2016. Non-GAAP net income per share was $0.07 for the first quarter of fiscal year 2017, based on 54.2 million pro forma diluted weighted average common shares outstanding. Non-GAAP net income per share was $0.02 for the first quarter of fiscal year 2016, based on 53.4 million pro forma diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $8.0 million compared to Adjusted EBITDA of $3.3 million in the first quarter of fiscal year 2016.

Balance Sheet and Cash Flow:

Cash and cash equivalents totaled $78.0 million at the end of the quarter.

Cash flow from operations for the first quarter of fiscal year 2017 was $1.9 million compared to $3.0 million for the first quarter of fiscal year 2016.

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."